Presentation on Proposed Goods and Service Tax, in a brief manner following 6*6 Rule of PPT, Covering all major portions

1. PROPOSED
GOODS & SERVICE TAX
IN INDIA
- CA. UDIT JAIN
9811235657
uditjain9811@gmail.com

2. WHAT IS GST ? ? ?
GST is Goods and Service Tax
Comprehensive Levy on Manufacture, Sale & Consumption
Tax on VALUE-ADDITION at each stage
Destination based tax
Dual Taxation Structure
- CGST
- SGST
ITC will be allowable tax wise

3. NEED OF GST !!!
 Reduction in MULTIPLICITY OF TAXES
Mitigation of Cascading Effect
Incremental GDP of around 2%
Bring Transparency
Uniformity in Taxation Regime
 Reduction in Multiple Taxable Events

4. PRESENT V/s PROPOSED
STRUCTURE
OF
GOODS & SERVICE TAX
MULTIPLE
TAXES
SINGLE
TAX

5. PRESENT INDIRECT TAX STRUCTURE OF INDIA
UNION LIST
-EXCISE DUTY
-SERVICE TAX
-CUSTOM DUTY
STATE LIST
-VAT
-CST
-ENTRY TAX
-ENTERTAINMENT TAX
-OCTROI

6. S. NO SUBSUMED UNDER CGST SUBSUMED UNDER SGST
1. Central Excise Duty VAT / Sales Tax
2. Additional Excise Duties Entertainment Tax
3. Excise Duty – MTP Act Luxury Tax
4. Service Tax Taxes on Lottery etc
5. Additional CVD Entry Tax
6. SAD of Customs State cess & surcharge
TAXES TO BE SUBSUMED !!!

7. PROPOSED INDIRECT TAX STRUCTURE OF INDIA

8. Statute Point of levy
Central Excise Manufacture & Removal
Service Tax Provision of Service
VAT & CST Sale & Movement of Goods
Entertainment Tax Admission / Sale of ticket
Entry Tax Entry of Goods into Local Area
GST Supply
ELIMINATION OF MULTIPLE TAXABLE EVENTS

9. PRESENT TAX STRUCTURE

10. PROPOSED TAX STRUCTURE

11. MODEL OF GST
 For INTRASTATE SUPPLY : DUAL TAXATION MODEL
- CGST
- SGST
 For INTERSTATE SUPPLY - IGST
 GST is a Destination Based Tax
 GST model similar to VAT
 ITC allowable – Inter Transfer Prohibited
 CGST & SGST to be paid SEPERATELY

12. APPLICABILITY OF GST
APPLICABLE ON ALL TRANSACTIONS OF SUPPLY
EXCEPT
 Petroleum Products
 Alcoholic Products
 Stamp Duties on Immovable Properties
 Entry Taxes – Municipalities & Panchayats
 Electricity Duties
 Taxes on lottery and betting

13. RATE & CLASSIFICATION OF GST
 HSN Codes for Classification
 Present Accounting Code for services
 Expected Rate – 17% to 18%
 Model GST based on 4 rates
 Merit Rate for essential goods & services
 Standard Rate in general
 Special Rate for precious metals
 Nil Rate

14. REGISTRATION UNDER GST
PAN based registration – 15 digit GSTIN
State
Code
PAN
Entity
Code
Check
Digit
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
If Turnover >= 9 Lakh registration mandatory
For every state separate registration
Separate registration possible for different verticles

15. RETURNS UNDER GST
For each month separate return
Return submit to both Centre & State
For each registration separate returns
Types of returns
- GSTR 1 : Outward Supplies
- GSTR 2 : Inward Supplies
- GSTR 3 : Monthly Return
- GSTR 6 : Input Service Distributor
Accounts audited by CA or Cost Accountant

16. GST COUNCIL
 Constituted within 60 days of ACT
 Votes required – 3/4th of vote cast
 Voting Share – Centre 1/3rd
- State 2/3rd
 Functions of Council
- Recommend taxed to be subsumed
- Scope of GST
- Threshold Limits & Rates
- Principles of Levy
- Dispute resolution mechanism

17. Some more provisions . . .
 Composition Scheme for 50 Lakhs – 1%
 Transitional Provisions regarding
- Registrations
- Carry forward of ITC
- Treatment of Goods return
- Pending Refund and Assessments
 GST & Information Technology Interface

18. INDUSTRY EXPECTATION FROM GST
 Seamless flow of Input Credit
 Simple business processes
 Minimal ITC Refund Cases
 Exemptions instead of exclusions
 Low compliance cost
 e-registrations, e-returns, e-payment

19. ROLE OF PROFESSIONALS
 Implementation Assistance – Transitional Provisions
 Post Implementation Support
 Tracking GST development
 Tax Planning
 Record Keeping

20. ROLE OF PROFESSIONALS
 Litigation Support
 Registrations and Returns Compliances
 Departmental Audit
 Resolving Industrial Issues regarding GST
 Review final legislation and impact analysis